A match is set between the Seattle Karate Team and the New York Karate team. After the fighters are introduced a change occurs in the line and Ivan from the beginning now is fighting the Seattle Team.Dean fights Ivan first, and gets knocked out of the ring resulting in a loss. Frank fights Ivan next and gets ko'ed in the first round. Ian then fights Ivan. Ian proves that he is no push over, but Ivan fights dirty and beats Ian. Kelly decides to interfere with the match and hit Ivan with a stool. Ivan grabs Kelly's hair and Jason then runs from the crowd to attack Ivan.Jason proves that he is a much better fighter than before, and starts to turn the odds for him. Ivan get the better of Jason and starts to beat him. R.J tells Jason about No Retreat No Surrender, then Jason starts beat Ivan some more. Jason knocks Ivan out of the ring, and the crowd jumps in the ring to cheer Jason.

At the beginning, when Ivan and the two New York businessmen approach the school, the three are seen through a window from inside the school. If you pay close attention to the reflection of the students in the window, you can see that they are in no way doing anything related to what is being heard inside the school. After the class is dismissed and starts to leave, we see Ivan and the two businessmen begin to enter the school, and if you look in the window, the class is still going hard.